The challenge of Consensus

Locating any marijuana establishments in Saugus will take a unanimous vote when hearings resume next Tuesday night

By Mark E. Vogler

SAUGUS – It’s been two months since the hearings of seven companies seeking to obtain a special permit to open a retail pot shop in Saugus ended acrimoniously. The failure to notify the abutters of each of the businesses involved prompted the Board of Selectmen to continue their Oct. 7 hearings until after the Nov. 7 town election.

Instead of hearing more testimony and voting on the issuance of up to three S-2 permits, then-Board of Selectmen Chair Anthony Cogliano engaged in 15 minutes of bitter discourse with then-Vice Chair Debra Panetta. They accused each other of unethical conduct in a divisive argument that may have contributed to a major power shift in the board’s leadership. Voters reelected all five incumbent selectmen for a third consecutive two-year term.

But Panetta – not Cogliano – will be presiding as chair when the board resumes the hearings for the S-2 permit at 7 p.m. Tuesday (Dec. 12) in the second floor auditorium at Saugus Town Hall. Cogliano lost the chairmanship position he’s held for the previous two terms when he finished fourth in a field of seven candidates – 759 votes behind his chief political rival, Panetta, who got 473 more votes than the runner-up in the selectmen’s race.

Panetta said she expects the hearings will go much smoother when they resume Tuesday night than at previous hearings. “We have seven applicants for marijuana retail licenses. Each applicant will come before the board and they will have an opportunity to speak,” Panetta told The Saugus Advocate this week.

“I anticipate the board voting on Tuesday. All the abutters have been notified along with the applicants,” she said.

Cogliano declined to comment on next week’s session. Selectman Michael Serino, who was critical of the way Cogliano had presided over the previous hearing sessions, also did not wish to comment.

Selectman Corinne Riley maintained a positive outlook on the potential for one or more retail pot businesses locating in Saugus. “The marijuana hearings have been going on for several months. There were several good candidates that, in my opinion, were a good fit for our town,” Riley told The Saugus Advocate this week.

“I look forward to wrapping up the hearings, if the board decides to do so, and getting one or two establishments on Route 1 for additional tax income,” she said.

If a company receives the unanimous backing of the four selectmen who will vote, the next step would be to enter into a host community agreement with the town manager. And, finally, the Cannabis Control Commission would have to issue them a license. (Selectman Jeff Cicolini recused himself from participating in the hearings because of a potential conflict of interest – one of the seven companies is a client of his accounting firm.)

It’s possible that the hearings may end without selectmen issuing an S-2 permit, which will require a unanimous vote of the four selectmen who will be voting. S-2 permits require four-fifths approval.

Getting all four remaining selectmen votes poses a challenge, though, as Selectman Michael Serino had previously said that he would prefer to see a ballot question be put before Saugus voters. If Serino sticks to that position, the board won’t have the necessary votes to issue any S-2 permits.

Even if Serino decides to participate in a vote, consensus remains a huge challenge, especially for Uma Flowers, which was the unanimous selection of the seven-member Marijuana Establishment Review Committee (MERC). In its report, the MERC ranked Uma Flowers as the best-suited location for an adult-use cannabis business in Saugus. With a proposed location at 24 Broadway (Route 1 North), Uma Flowers achieved a perfect score of 140 total points, based on an “exceptional” rating by each member in each of the five categories that were considered.

But Cogliano has publicly criticized the MERC report and its top recommendation of Uma Flowers. Cogliano said he disagrees with the MERC for only recommending two permits, when it could have three. “I don’t agree with that report, whatsoever,” Cogliano said. He said the committee failed to do thorough research before making its recommendations.

“That report is inconclusive. It makes no sense to me,” Cogliano said.

Cogliano also said the MERC report was unfair and “vindictive” toward the businesses where he had disclosed a potential conflict.

Panetta and Serino have questioned how he could be objective in voting with his potential conflicts of interest.

There is also the matter of the town’s zoning bylaw that prohibits the locating of two recreational marijuana retail establishments within 1,000 feet of each other. Cogliano has openly supported the application of Bostica LLC, with a proposed site at 44 Broadway, the site of the former Donatello Ristorante and Oye’s Restaurant. It is situated close to Uma Flowers’ site.

Attorney Valerio Romano, who represents Uma Flowers, noted in a letter to the board that “it is a reasonable inference that despite the MERC’s independent assessment, the chair believes that Bostica’s S-2 application should be awarded and Uma’s should be denied.”

With only four of five selectmen voting, it appears possible that neither Uma Flowers nor Bostica can obtain enough votes for an S-2 permit.

Both Selectmen Panetta and Serino said they believe comments Cogliano recently made about Uma Flowers could cost the town financially. “Quite frankly, I think we’re going to end up in a court battle here,” Serino said, referring to the detailed letter from Attorney Romano, which challenged several criticisms Cogliano made about Uma Flowers.

Here is a summary of the MERC report’s ranking of the seven companies vying for the three S-2 permits. The review committee used a point system in recommending the two establishments that members believe were best suited for doing business in Saugus.

• Uma Flowers, LLC with a proposed location at 24 Broadway (Route 1 North) – the site of a former house that was torn down – was the unanimous selection of the seven-member committee, achieving a perfect score of 140 total points, based on an “exceptional” rating by each member in each of the five categories that were considered. The site is considered ideal, as it is the farthest north on Route 1 near the Lynnfield line and the farthest away from the Malden dispensary, which is already open and operating. The site abuts conservation land, is already zoned appropriately and does not pose residential or school issues.
• Sanctuary Medicinals, with a proposed location of 181 Broadway (Route 1 South), also received a favorable recommendation to be issued a special permit for zoning by selectmen to locate at the site of the former 99 Restaurant. The business received a total of 118 points out of a possible 140. “The Respondent’s proposed location is advantageous, and its extensive cannabis experience and current vertical integration business model are significant benefits,” the committee concluded in its analysis.

“The Respondent appeared to be one of the strongest positioned to open, succeed, and provide minimal or manageable impact to the surrounding neighborhood,” it noted.

The committee concluded that the other five companies that responded to an RFI earlier this year “did not meet the criteria necessary to earn a recommendation from the Review Committee at this time.”

Committee members included Town Manager Scott C. Crabtree, Police Chief Michael Ricciardelli, Fire Chief Michael Newbury, Director of Public Health John R. Fralick III, Procurement Director Michele Wendell. Vice Chair of the Saugus Planning Board Jeanette Meredith and Building Commissioner Michael LaVecchia. The Review Committee spent more than 65 hours as a group – totaling more than 455 individual hours – that entailed reviewing RFIs, conducting research, meeting the Respondents, performing site visits and listening to presentations. The committee also created a Respondent Evaluation Rubric, which ranked the respondents on five key categories: their response, business model, impact, location and direct experience.

  Triple M Ventures finished third in the ranking, with 92 points. The committee expressed major concerns about the proposed dispensary site at 1393 Broadway, the current home of All Tune & Lube car repair services. The proposed site is not able to support enough parking for the proposed dispensary. There are concerns about access off of Route 1. The site also abuts a residential neighborhood and is located very close to the Saugus Middle-High School.

Conclusion: “The proposed location does not meet the Town’s zoning by-laws. In addition, the Respondent did not submit what was required in the RFI related to the planning, approvals, and time required to make the proposed premises at 1393 Broadway a viable site. However, the Review Committee found the Respondent’s retail cannabis business experience and operations were professional.”

  Olde World Remedies finished fourth in the ranking with 35 points. The committee noted in its report that the proposed location at 173 Main St. – a current exotic car dealership – “presents several challenges.” The location is within view of the Saugus Middle-High School. Access to the site has a Main Street off ramp curb cut.

Conclusion: “The Review Committee has serious concerns about the Respondent’s proposed Saugus location and the challenges present during the Lynn site visit.”

  Northeastcann finished fifth in the ranking with 32 points. The committee found the proposed site at 1529 Broadway, the current Avalon Motel, as “adequate.” But the committee was concerned about its proximity to existing cannabis retail businesses operating in Malden and Melrose. Access to the site is difficult, due to significant traffic congestion in the immediate area. In addition, the current and future development of Essex Landing has already added significant traffic and roadway layout challenges, according to the committee.

Conclusion: “The lack of an open retail cannabis business and verifiable cannabis retail experience are a concern to the Review Committee. In addition, the proposed location presents negative impact concerns and challenges.”

  Bostica, LLC finished sixth in the ranking with 25 points. The proposed site at 44 Broadway, the site of the former Donatello Ristorante and Oye’s Restaurant, raised some concerns for the committee, particularly its close proximity to local residences.

Conclusion: “The Respondent has no retail operational cannabis business experience. While the Respondent has substantial investor financing in the Lynn grow/cultivation facility and it seems promising, the lack of a proven track record and specific details about how its retail cannabis business would operate is a concern to the Review Committee. The Respondent lacked adequate and/or no direct experience in the industry of Adult Use Marijuana Retail Establishment dispensaries.”

  Broadway Cannabis finished last in the ranking with 0 points. Its proposed location at 1268 Broadway, the site of the former Out of Asia restaurant, presents significant challenges, according to the committee. The site is located close to residences and there are access issues. There are existing cannabis businesses already open and operating nearby in Malden and Melrose.

Conclusion: “The Respondent’s proposed location is not ideal, and the Response was missing key pieces of information. The proposal was non-responsive to parts of the RFI. The Review Committee has serious concerns about whether this Respondent could successfully complete the buildout necessary to open a dispensary. Furthermore, the Respondent has no experience operating an Adult Use Marijuana Retail Establishment. The Respondent lacked adequate and/or no direct experience in the industry of Adult Use Marijuana Retail Establishment dispensaries.”